In May, a Firm Experienced a Forecast Error of -25

question 125

Multiple Choice

In May, a firm experienced a forecast error of -25. In June and July, the forecast errors were found to be -10 and 20, respectively. What is the firm's forecast MAD for these three months?

• A) -15
• B) -5
• C) 18.3
• D) MAD cannot be determined from the information provided

---

Definitions:

Systematic Random Sample

A sampling method where elements are selected from an ordered population using a fixed, periodic interval.

Random Selection

Random selection is a process in statistical sampling where each member of the population has an equal chance of being chosen, ensuring the sample is representative of the whole.

Sample

A sample is a subset of a larger population, selected for the purpose of analysis, which is used to infer or predict characteristics or outcomes for the whole population.

Statistic

A single measure, often derived from a sample, used to summarize or describe an aspect of the data.